Fiscal policy refers to the changes in governments choices regarding the overall

Fiscal policy refers to the changes in governments choices regarding the overall level of government spending and taxes to affect the behavior of the economy. Fiscal policy can expand or contract aggregate demand. The government sometimes uses the fiscal policy instruments in an attempt to stabilize the economy. Under a recession an expansionary fiscal policy is adopted which involves lowering taxes and increasing government spending. In an overheated expansion with an inflationary pressure a contractionary fiscal policy is utilized which requires higher taxes and reduced spending. Economists and policymakers disagree about how active the government should be in these efforts. Based on the above summary and the detailed descriptions of the issues in the textbook (chapter 30) discuss any of the following set of questions:Must be at least 100 words.